Well run treasury function.
For everyone else:
Pinnacle are on an acquisition drive at the moment at the behest of the shareholders. I'd be wary in the short-term of swing trading Pinnacle unless you can short it (note, not investing which is wholly different) as technicals point to there being a correction soon, unless of course clarity on their earlier cautionary is released and is positive. For those of you who'd like a simple explanation and some help in what I'm talking about, take a look at their simple moving average, and overlay some bollinger band indicators (these help to confirm a trend, they do not predict them - this is why they are called indicators). You can quickly spot their correlation with the moving average, and is quite typical of how traders will trade price and technicals. In simplistic terms, a bollinger band will help you to determine price - the top end being expensive and the low end being cheap (in incredibly simplistic terms). Many traders will sell on the moving average though (iow when spot and MA intercede). You will notice that historically when the price breaks through the top end of the bollinger band and flattens, it is followed by a protracted weakening of the stock. This is precisely how they are poised at the moment, so I'd personally expect to see some short-term weakening of the stock, however long-term technicals look good. Looking at the OHLC, this seems to be the case as well. Also note how they trade each time they they break through new price points, especially all-time highs. Monitor the volumes - higher volumes do not mean a higher interest in the stock necessarily - it could be market makers maintaining their volatility ratios and it might indicate additional volatility, but again, you confirm these with technical indicators.
But this is purely based on technical data. When one makes a decision to buy or sell, it is based on various metrics. Technicals form a large part of that for many people, and often it is quite nice to find a stock like Pinnacle that trades in fairly predictable patterns. But these patterns can change on a whim, and with a cautionary statement out, one has to keep an ear to the ground about M&A activity and constantly watch SENS announcements. You also have to factor in currency risk, financials and associated metrics, as well as director dealings, index movements, futures market, analyst forecasts and industry news. These sorts of metrics are what will make you a good investor. Becoming an expert in certain companies or industries will make you a very successful investor, and even trader.
So with regards to Pinnacle, I'd suggest possibly holding out on buying in the short-term to see if the downward trend is confirmed. If it is, then monitor the bollinger bands to see when it reaches the traditional low-end of the pricing range - once reached, monitor volatility, use candlestick charting to determine the bottom price, overlay RSI and confirm when the stock swings upward. A single day's trade of positive movement does not a trend make. Don't become a victim to greed if you're looking to invest for the long-run. All you're trying to do is determine a safe point at which to enter the stock - one at which you can maximise returns.
Note that the technical example I provided above is simply an example. There is never any guarantee that a stock will trade predictably, no matter how much analysis you perform...
Digital TV is not happening in June. You can thank me for the headsup any time. The spec isn't even agreed upon yet and all parties are neck-deep in litigation. It is not happening anytime soon. Don't jump on the Ellies bandwagon for digital TV reasons just yet, but that's not to say they're not a decent stock to get into now...
. Rather register at ShareNet and use their ShareChat Forum. On the Sharenet site only the latest posts are shown so click on "Go to ShareChat" and that will take you to the full forum.
